Question

Shore Co. sold merchandise to Blue Star Co. on account, $111,000, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $66,600. Shore paid freight of $2,000. Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank.

Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due. If an amount box does not require an entry, leave it blank.

Answer 1

Journal entry : Shore Co

Date	account and explanation	Debit	Credit
	Account receivable (111000*98%)	108780
	Sales revenue		108780
	(To record sales)
	Cost of goods sold	66600
	Inventory		66600
	(To record cost of goods sold)
	Cash	108780
	Account receivable		108780
	(To record collection)

Journal entry : Blue star Co

Date	account and explanation	Debit	Credit
	Merchandise inventory	111000
	Account payable		111000
	(To record inventory)
	Merchandise inventory	2000
	Cash		2000
	(To record freight paid)
	Account payable	111000
	Cash		111000
	(To record amount paid)